Vacation Home Calculator

Model the full financial picture of a second home — mortgage costs, rental income, tax benefits, and whether it beats investing your down payment.

$
$
%
nights
$
$
$
Net Monthly Cost After Rental Income
$2,043
Out-of-pocket after $1,213/mo rental income
Mortgage P&I: $2,456
Maintenance: $500
HOA: $300
Mortgage Payment
$2,456
Gross Rental Income/yr
$15,000
Net Rental (after 3% fees)
$14,550
Total Interest (life)
$524,100

Monthly out-of-pocket cost at different rental occupancy levels at $250/night.

30 Nights/Year
$2,650/mo
Out-of-pocket
Rental income: $7,275/yr
60 Nights/Year
$2,043/mo
Out-of-pocket
Rental income: $14,550/yr
90 Nights/Year
$1,437/mo
Out-of-pocket
Rental income: $21,825/yr
120 Nights/Year
$831/mo
Out-of-pocket
Rental income: $29,100/yr
Break-even rental nights: You need at least 162 rental nights per year at $250/night to fully cover all costs.
%
5-Year Net Position
+$8,431
Equity + rental income + tax savings minus all costs
5-Year Total Costs
$285,350
Down payment + all payments
5-Year Rental Income
$77,248
With 3% annual rent growth
5-Year Tax Savings
$21,838
Mortgage interest deduction
Home Value (Year 5)
$534,459
At 3.5%/yr
Equity (Year 5)
$194,695
Appreciation + principal paid
Net Annual Cost
$24,520
After rental income offset

How to Use the Vacation Home Calculator

This calculator analyzes a vacation or second home from all financial angles — not just the mortgage payment, but how rental income, taxes, and appreciation interact to determine the true cost.

Quick Calculator

Enter your Purchase Price, Down Payment, Interest Rate, and Loan Term. Then add expected Rental Nights per Year and Nightly Rate to see how much rental income offsets your carrying costs. The result shows net monthly cost after rental income.

Advanced — Vacation Home Analysis

Rental Scenarios compares net monthly cost at 30, 60, 90, and 120 rental nights. Tax Benefits models the IRS 14-day rule and mortgage interest deductibility. Cost vs Hotel calculates whether owning is cheaper than paying for hotel stays each visit.

Pro — Professional Model

The 5-Year Financial Model combines appreciation, rental income growth, and tax savings to show your net financial position. The Cash Flow Calendar estimates monthly cash flows accounting for seasonal demand patterns. The vs S&P 500 tab compares investing the down payment in stocks instead of buying.

Key Formulas

Net Monthly Cost = Mortgage + Maintenance + HOA − Monthly Rental Income
Gross Rental Income = Rental Nights × Nightly Rate
Net Rental Income = Gross Rental × (1 − Platform Fee %)
Break-Even Nights = Annual Costs / (Nightly Rate × 0.97)
5-Year Net Position = Equity + Cumulative Rental Income + Tax Savings − Total Costs

Worked Example: Beach House in the Outer Banks

The Johnson Family's Vacation Home Purchase

The Johnsons are buying a 3-bedroom beach house for $480,000 with 20% down at 7.25% for 30 years.

Purchase Price$480,000
Down Payment (20%)$96,000
Monthly Mortgage$2,613
Annual Maintenance$7,200 ($600/mo)
Annual HOA$3,600 ($300/mo)
Total Monthly Costs$3,513
Rental: 80 nights @ $350$28,000/yr ($2,333/mo)
Net Monthly Cost$1,180/mo out-of-pocket
Break-Even Nights~124 nights @ $350

The Johnsons use the property personally for 3 weeks (21 nights) and rent it for 80 nights, staying well under the 14-day rule threshold (they exceed 14 personal days so rental income is taxable, but they can deduct 80/365 = 22% of mortgage interest and expenses).

Frequently Asked Questions

Most lenders require 10-20% down for a second home classified as a vacation property. If the lender considers it an investment property (because you rent it most of the time), you typically need 20-25% down and will pay higher interest rates. The classification matters — be honest with your lender about intended use.
If you rent for more than 14 days, you can deduct the rental portion of mortgage interest, property taxes, insurance, maintenance, and depreciation. Deductions are prorated by the percentage of days rented vs. total days used. If you also use it personally, the IRS limits the deductible losses using vacation home rules — you generally can't deduct more than your rental income.
A second home (vacation property) is one you use personally for part of the year and rent out less than half the time. Investment property is purchased primarily to generate rental income. Second homes get lower rates and smaller down payment requirements. Lenders verify the distance from your primary home (typically must be at least 50 miles) to qualify as a vacation home.
Research comparable properties on Airbnb and VRBO in your target area. Look at similar homes' actual booked nights and rates. AirDNA and Rabbu provide market-level analytics. Be conservative — first-year occupancy is often 50-70% of established properties. Factor in seasonal patterns: peak season may generate 60% of your annual income.
Vacation homes typically cost more to maintain than primary homes because they're often near water, heavily used, or in climates with weather extremes. Budget 1.5-2% of property value annually for maintenance. Additional costs include: property management (20-30% of rental income), vacation rental insurance, furnishings, cleaning between stays, utilities (even when empty), and HOA fees if applicable.

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